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Sri Lanka Refocuses Tourism Strategy Toward Visitor Value and Local Spending

Sri Lanka Shifts Tourism Focus to Value and Local Expenditure
Image: Panorama Service Station, Now Open by Blue Mountains Library, Local Studies via flickr, by-sa

Sri Lanka is redefining its tourism policy by prioritizing visitor economic value and local spending over increasing tourist arrivals. The new approach underpins the forthcoming National Tourism Strategic Plan for 2026-2031 and a Global Destination Communication Campaign Road Map developed with local and international consultants.

The island recorded 2.36 million tourist arrivals in 2025, surpassing its pre-pandemic 2018 levels, yet tourism revenue remained around US$3.2 billion—below historic benchmarks. The government targets 4 million visitors and US$8 billion in tourism earnings by 2030. The strategic plan is scheduled for completion by February 2027.

Government Officials Emphasize Visitor Value and Sustainable Growth

Tourism Deputy Minister Prof. Ruwan Ranasinghe said Sri

Lanka must move beyond focusing solely on volume to concentrate on sustainable economic value generated per visitor, highlighting the nation’s ecological sensitivity and cultural asset fragility. “We need to focus on value. That is the way forward,” he stated. Tourism Ministry Secretary Aruni Ranaraja emphasized that longer stays, increased spending, enhanced experiences, greater local participation, and sustainable asset use are central to the new strategy.

World Bank Support and Consultancy Partners

The World Bank backs Sri Lanka’s tourism sector transformation through a US$300,000 grant provided via its Grant Facility for Project Preparation. Natasha Kapil, Lead Private Sector Specialist at the World Bank, outlined this support. The

Global Destination Communication Campaign Road Map is a six-month consultancy project starting in 2026, led by Sri Lanka-based MTI Consulting with Dr. Vipula Wanigasekera as team leader, and US-based Skift Inc.

Addressing Economic Leakage and Empowering SMEs

Jose de la Maza, CEO of Aninver Development Partners, stressed the need to increase the share of tourist spending retained within Sri Lanka, citing leakage through international airlines, overseas suppliers, and global hotel groups. He warned that informality in the tourism economy could exacerbate leakage from the formal sector. The strategy places small and medium enterprises (SMEs) at its core, recognizing their role in local transportation, food services, accommodations,

guiding, crafts, agriculture, and fisheries. De la Maza called tourism an inherently entrepreneurial industry requiring support through skills development, financing, incentives, and an enabling business environment.

Geographic Diversification and Regional Development

The National Tourism Strategic Plan aims to diversify tourism products regionally across Sri Lanka’s nine provinces, linking tourism with local agriculture, fisheries, handicrafts, arts, technology, and food production. Dr. Malraj Kiriella, a strategic planning consultant, noted that provinces like the North and East hold significant cultural, coastal, and marine tourism potential, though infrastructure and connectivity challenges limit development. He stated the goal is to create market-ready, high-value experiences instead of simply relocating tourists among

sites. The geography-based approach targets employment creation, skills development, income generation, and regional progress.

The strategy’s development includes comprehensive data collection, spatial and GIS analysis, and two national workshops planned for mid-October 2026 and January 2027 to review findings. The roadmap will chart actionable, measurable outcomes rather than remain a theoretical document.